i-Retire (II) — Product Review

Overview

i-Retire (II) is a participating endowment plan from China Taiping Insurance (Singapore) designed for retirement planning. The plan offers flexibility in choosing your premium term (5, 10, or 15 years), accumulation period (5 to 25 years), and income period (10, 20, or 30 years). During the income period, you receive monthly payouts comprising a guaranteed monthly income plus a non-guaranteed monthly cash bonus. The plan also provides a lump sum benefit (24 times the prevailing guaranteed monthly income) if the life insured experiences loss of independence, without reducing death or surrender benefits. Notably, this plan has no maturity benefit — the policy terminates after the income period ends.

The plan is quoted by premium — you choose your annual outlay (typically $2,500–$10,000) and the payout follows. Benefit illustrations are shown at 3.00% and 4.25% p.a. investment return rates.

How it compares

At a common basis (age 35, male, non-smoker, $10,000 annual premium), the comparison reveals significant differences:

i-Retire (II) offers a higher guaranteed surrender value at year 20 than TM Nest Egg (II), but significantly lower than Manulife FlexiRetire. The participating fund's 5-year net investment return is -0.03%, and the total expense ratio is 5.12% — substantially higher than all peers (TM Nest Egg at 0.58%, Manulife at 2.40%, Prudential at 2.27%). This high expense ratio may weigh on future bonus declarations.

For a $2,500 annual premium, the illustrated surrender value at year 10 is $8,000 (projected up to $8,775), and at year 20 is $37,500 (projected up to $42,000). The projected yield to maturity ranges from 2.08% to 3.33% p.a. Distribution costs are $3,524 per $2,500 annual premium.

Pros

• Flexible structure: Choice of premium term, accumulation period, and income period; income period can be changed after policy inception
• Guaranteed surrender value reaches 100% of total premiums paid by end of accumulation period
• Loss of Independence benefit provides additional lump sum without reducing other benefits
• No underwriting required
• Level, guaranteed premiums
• Insurer rated A (A.M. Best)

Cons

• No maturity benefit — policy simply terminates after income period
• High expense ratio (5.12% over 5 years) compared to peers
• Negative 5-year net investment return (-0.03%) on the participating fund
• Non-guaranteed bonuses — monthly cash bonus and terminal bonus depend on fund performance
• No SRS or CPFIS premium payment allowed
• Death benefit restriction: within first year, only 100% of premiums (without interest) is payable for non-accidental death
• Distribution costs are significant relative to premium

Who it may suit

i-Retire (II) may suit individuals who value flexibility in retirement income planning and want a guaranteed income stream with the option to adjust the income period as needs change. The LOI benefit adds a layer of protection for those concerned about long-term care costs. However, given the high expense ratio and negative recent fund performance, it may be less suitable for cost-conscious savers or those prioritising investment efficiency. Consider comparing the projected yields against alternative fixed-income options before committing.

This is general information based on CompareFIRST.sg data, not financial advice. Premiums and features can change; please verify with the insurer or a MAS-licensed financial adviser before making any decision.